CUBA & IRAN: IS IT TIME TO INVEST?
What Jack did up there in
the castle was wrong, and it is
precisely that scenario that the
international business community
should seek to avoid with Iran.
Instead of beanstalk-style grab and run missions to secure
a nugget of gold, investors should strive to foster friendly
relationships with Iran for the long term. By doing so, the
chances of benefiting from the nation’s resources and
economic potential are much higher and infinitely more
sustainable than those of quick-win campaigns.
Granted, it is still early—too early some may say—to wax
lyrical over Iran’s economic potential. However, in a rapidly
changing environment, the old adage ‘he who hesitates loses’
is worth heeding, as Professor Louis Habika explains. “Iran's
economy is diverse and will not require a long time to flourish
again,” said the financial expert and economy professor at
Beirut Arab University in a recent interview. “It’s a very good
place to expand your international business,” he added.
Economic data from recent years adds credence to Habika’s
words. According to the World Bank, Iran’s GDP was worth
US$415.34 billion in 2014. That represents 0.67 percent of
the global economy. While IMF data points to a decline of just
over US$19.5 billion in 2015, the Fund forecasts a healthy
rise for this year, with Iran’s GDP expected to increase to
US$416.22 billion. This figure is short of the country’s all-time
high of US$576.56 billion in 2011, but attractive nonetheless
for a country where GDP averaged US$148.91 billion bet ween
1965 and 2014.
IRAN'S ECONOMY IS DIVERSE
AND WILL NOT REQUIRE A LONG
TIME TO FLOURISH AGAIN.
28 Emerging Markets Business Summer 2016 • Issue No. 1